List of recommendations

3.24The Committee recommends that the Commonwealth Procurement and Contract Management Capability Self-Assessment Survey conducted by the Department of Finance be made mandatory by the Australian Government for all Commonwealth entities, including corporate entities, that enter into contracts with external service providers.

3.25The Committee recommends that as part of the new mandatory Commonwealth Procurement and Contract Management Capability Self-Assessment Survey, the Department of Finance must ensure:

that any survey responses not received in a timely manner will be regarded as a formal breach by the entity in question and be notified to the Ministerfor Finance

that there are clear indicators of the entity’s capabilities against the frameworks and best practices conveyed in the contract management guide

that where deficiencies are identified through the survey responses, a directive is issued by Finance for corrective action to be taken.

3.26The Committee recommends that the Department of Finance consults with the Australian National Audit Office and all other relevant agencies as needed to produce more effective guidance on the following areas of contract management weakness:

maintaining arm’s length and robust relationships with suppliers to ensure contract delivery

effective engagement with contract stakeholders to properly understand their concerns

understanding and fulfilling Commonwealth recordkeeping requirements

assessing and then documenting value for money in contract variations

the measurement and management of contract performance through the development of workable and effective key performance indicators

contract management training and upskilling.

3.27The Committee recommends that the Australian Digital Health Agency reports back to the Committee at six months and again at 12 months from the date of this report on:

its progress in implementing the six recommendations of the audit

the progress and outcomes of the upcoming open tender process for the new My Health Record procurement.

3.28The Committee recommends that the Department of Home Affairs reports back to the Committee at six months and again at 12 months from the date of this report on:

its progress in implementing the 10 recommendations of the audit

the progress and outcomes of the upcoming tender process for the new Adult Migrant English Program contracts.

3.29The Committee recommends that the Australian National Audit Office reports back on the higher incidence of it having to use its powers under Section 33 of the Auditor-General Act 1997 and with a suggested course of action for the Committee’s consideration.